China central bank drains cash from open market operations

China's central bank said on Wednesday that it injected 642.4 billion yuan ($90.23 billion) through seven-day reverse repos.

The People's Bank of China (PBOC) said the operation was meant to counteract factors including maturing medium-term lending facility (MLF) and reverse repo loans, in order to keep "banking system liquidity reasonably ample," according to an online statement.

A batch of 789 billion yuan worth of MLF loans and another 61 billion yuan of reverse repo loans are due to expire on Wednesday. It resulted in a net cash withdrawal of 207.6 billion yuan for the day.


($1 = 7.1194 Chinese yuan)